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Also known as: NSM

North Star Metric

ConceptualMetricsStrategies

Definition

North Star Metric: A North Star Metric is the single metric that best captures the core value your product delivers to customers. It serves as a company-wide focus point, aligning teams around a shared goal. Good North Star Metrics correlate with revenue growth and customer success.

Example Usage

β€œOur North Star Metric is weekly active projects, which correlates strongly with retention and expansion.”

Common Misconceptions

Revenue is a good North Star. It's a result, not a driver of customer value.
You can have multiple North Stars. Having one creates focus; multiple dilutes it.
The North Star never changes. It should evolve as your business and strategy evolve.

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